Hey fellow traders! Today, I'm excited to share with you a trading system I've been developing that incorporates the LUX Algo indicator; Session Sweeps as its foundation. This system revolves around leveraging session sweeps, major trend line breaks, and targeting liquidity voids to optimize trading opportunities.
All changes, add-ons, and customizations welcomed! Excited to see what other ways traders can capitalize on this is awesome concept.
Session Sweeps: Free Indicator on TradingView: https://se.tradingview.com/script/KdOv0Dfq-Session-Sweeps-LuxAlgo/
Liquidity Void: Free Indicator on TradingView: https://www.tradingview.com/script/rRKtzvFt-Liquidity-Voids-FVG-LuxAlgo/
Price Action and VPROF: Free Indicator on TradingView: https://www.tradingview.com/script/Z1byay68-Price-Action-Support-Resistance-by-DGT/
Understanding Session Sweeps: To kick things off, let's delve into the Session Sweeps indicator. This tool combines ICT-based features, focusing on market sessions, market structure, and fair value gaps to identify optimal entry conditions for trading price action.
How it Works: Session sweeps occur when the price briefly crosses either the highest or lowest point of a market session. These movements are aimed at triggering stop losses, hinting at potential shifts in market direction. The indicator helps detect these sweeps during major trading sessions such as Asian, European, and North American sessions.
Market Structure Shifts and Fair Value Gaps: In addition to session sweeps, we also pay close attention to market structure shifts and fair value gaps. Market structure shifts indicate a change in market direction, while fair value gaps highlight inefficiencies or imbalances in the market. These elements are crucial for identifying entry points and anticipating market movements.
Liquidity Void / FVG: The Liquidity Voids (FVG) indicator is designed to detect liquidity voids/imbalances derived from the fair value gaps and highlight the distribution of the liquidity voids at specific price levels. Fair value gaps and liquidity voids are both indicators of sell-side and buy-side imbalance in trading. The only difference is how they are represented in the trading chart. Liquidity voids occur when the price moves sharply in one direction forming long-range candles that have little trading activity, whilst a fair value is a gap in price.
Stop Hunts: After a trend break or a MSS price will sometimes come back to stop hunt or grab liquidity before making a bigger move towards take profit. Safer entries will be to enter after the stop hunt, or place wider SL's
Entry Setup Examples: Let's break down the entry setup for long and short positions on a 5-minute timeframe:
Long Positions:
All changes, add-ons, and customizations welcomed! Excited to see what other ways traders can capitalize on this is awesome concept.
Session Sweeps: Free Indicator on TradingView: https://se.tradingview.com/script/KdOv0Dfq-Session-Sweeps-LuxAlgo/
Liquidity Void: Free Indicator on TradingView: https://www.tradingview.com/script/rRKtzvFt-Liquidity-Voids-FVG-LuxAlgo/
Price Action and VPROF: Free Indicator on TradingView: https://www.tradingview.com/script/Z1byay68-Price-Action-Support-Resistance-by-DGT/
Understanding Session Sweeps: To kick things off, let's delve into the Session Sweeps indicator. This tool combines ICT-based features, focusing on market sessions, market structure, and fair value gaps to identify optimal entry conditions for trading price action.
How it Works: Session sweeps occur when the price briefly crosses either the highest or lowest point of a market session. These movements are aimed at triggering stop losses, hinting at potential shifts in market direction. The indicator helps detect these sweeps during major trading sessions such as Asian, European, and North American sessions.
Market Structure Shifts and Fair Value Gaps: In addition to session sweeps, we also pay close attention to market structure shifts and fair value gaps. Market structure shifts indicate a change in market direction, while fair value gaps highlight inefficiencies or imbalances in the market. These elements are crucial for identifying entry points and anticipating market movements.
Liquidity Void / FVG: The Liquidity Voids (FVG) indicator is designed to detect liquidity voids/imbalances derived from the fair value gaps and highlight the distribution of the liquidity voids at specific price levels. Fair value gaps and liquidity voids are both indicators of sell-side and buy-side imbalance in trading. The only difference is how they are represented in the trading chart. Liquidity voids occur when the price moves sharply in one direction forming long-range candles that have little trading activity, whilst a fair value is a gap in price.
Stop Hunts: After a trend break or a MSS price will sometimes come back to stop hunt or grab liquidity before making a bigger move towards take profit. Safer entries will be to enter after the stop hunt, or place wider SL's
Entry Setup Examples: Let's break down the entry setup for long and short positions on a 5-minute timeframe:
Long Positions:
- Wait for the previous session's low to be swept.
- Look for a Bullish Liquidity Void.
- Identify a Bullish FVG formed by or before the CHoCH.
- Entry Point: At the FVG.
- Take Profit: At the session high or aim for a 1:2 Risk-Reward Ratio.
- Stop Loss: At the session low or nearest Swing Low.
Short Positions:
- Wait for the previous session's high to be swept.
- Look for a Bearish CHoCH.
- Find a FVG formed by or before the CHoCH.
- Entry Point: At the FVG.
- Take Profit: At the previous session's low or aim for a 1:2 RR.
- Stop Loss: At the session high or nearest Swing High.
Customization and Settings: Users have the flexibility to customize various settings, including session times, colors, and margin values, to tailor the system according to their preferences.
Conclusion: In summary, the trading system based on session sweeps by Lux Algo offers a comprehensive approach to identifying entry opportunities in the market. By combining session sweeps, market structure shifts, and fair value gaps, traders can enhance their decision-making process and potentially improve trading outcomes. Feel free to share your thoughts and experiences with the community!
I'll follow up with some screen print examples soon